Fire Ramírez

In agreeing not to cut oil production quotas in the face of a steep price decline – driving oil prices into the mesosphere – the organization has decided that business as usual … is over. The long-term challenge of shale oil will be confronted head on through a price war, and members will defend their market share. Saudi Arabia, in particular, seemed to be saying to countries that failed to save in good times: “tough.”

The meeting was lapidary for the Revolution’s pretension to continue in its failed model. If $100-per-barrel oil is gone for good, we will need to adapt. We cannot continue living on exploding budget deficits, massive state bureaucracy, enormous subsidies, and restricted imports to sort-of make ends meet. Good luck with that.